Hey folks, Nick Valdez here, chief
crypto strategist. And today we're
looking at ProShares crypto edition, and
we're going to look at the Bitcoin
chart. We're going to look at Bitcoin
dominance, and we're going to look at
that effect on altcoins today. We're
going to look at Zcash, Solana, XRP,
Cardano, Ethereum, all of the majors,
folks. Let me know down in the comments
what altcoins you want to see on the
next video. So without further ado,
let's jump into the Bitcoin chart. Now,
Bitcoin still struggling to basically
beat this area of resistance, which is
the November wick low until the May
highs. And then you can see right here,
it just can't pass this level. It got
pushed down again. It retested it a few
days ago, and it's now testing this
bottom line of support. Now, to get a
better look at this, let's zoom in from
the daily chart to the 4-hour chart. And
look at this move right here. So this is
going to be the wick that we saw August
23rd into September 2nd. That
establishes our trend line. And if you
continue to move that trend line out,
that's exactly where we found support
today. Now, I'm going to zoom into the
1-hour. This right here was the PPI
numbers. PPI numbers came in, and there
was a major sell-off on crypto and other
risk assets, and you can see it found
support right there. But it is starting
to knock on the door. Knocked on the
door again.
And this 1-hour candle is looking red.
So the more we knock on this door, the
more likely we're going to burst through
the door. It's like we're ramming it
with our shoulder. Eventually, you're
going to weaken the door enough where
you crash through. Now, we're looking at
Bitcoin dominance. So this is looking at
the market cap of Bitcoin compared to
the market cap of all of crypto. So what
does Bitcoin dominance measure? Measures
the strength of Bitcoin versus altcoins.
And so when Bitcoin dominance shrinks,
that means altcoins share of the market
is increasing. So, Bitcoin dominance
falls, good for your altcoins. Bitcoin
dominance rises, bad for your altcoins.
And what are we seeing on the Bitcoin
dominance chart? Well, eventually, might
be some good news for some altcoins.
Right now, Bitcoin dominance in a
parallel range within this basically a
in spirit of bear flag. Now, what do you
need with the bear flag? You need a 90°
angle to a 45° angle, and then that
gives you essentially your nice little
target for a breakdown to the downside.
You would measure the pole, and then
that would give you the, you know, where
you're expecting price to head, or in
this case, dominance to head. Now, we do
need this to break below, and then,
you know, we basically can maybe test
this area down here. Now, this is
nothing like alt seasons of the past.
This is alt season of 2021, Bitcoin
dominance just plummeting, which was
great news for your altcoins.
And we're not seeing moves like that
anymore. But, you can see like nice
little moves here. This uh in May, you
know, Zcash had a nice little move in
May. It was going to be about right
here. Solana had a nice little move in
May, put in a little local high. ETH
after the crash in January, it had its
high in May as well. So, let's look at
Bitcoin dominance. If we can get a nice
little move to the downside, uh this
target, you know, if you measure this
pole, is essentially a double bottom in
this range, which is great news for
altcoins. Speaking of altcoins, let's
look at some altcoins. We are seeing
strong bearish divergence on Zcash on
the daily chart. So, what what is
bearish divergence? Well, it's when
you're looking at the relative strength
index, which is this bottom chart right
here. And this just measures the
strength of a market. And a bear div is
where you're going to have higher highs
on the price, lower highs on the RSI.
That gives you a bear div. Now, a bull
div is essentially the opposite. That's
where you're going to see
uh essentially lower lows on the price
where you would see higher lows on the
RSI. So, it's the inverse of the bearish
divergence. Now, right now, you can see
we are seeing some bear divs on Zcash
where the RSI is coming in lower where
the price was heading much, much higher.
So, that just gives us a nice little uh
interesting factor for Zcash. If you're
jumping in with Gareth Soloway, you
know, he did get a nice short in and
look at that. Yes, got in uh around 12,
little above 1,200, and now we're
sitting here at 11:26.
So, great, great call by Gareth Soloway.
You can check out more on that at
verifiedinvesting.com.
Let's look at Solana.
Couple key levels on Solana. Solana lost
its level with the PPI print. And this
we kind of had a sign. We could see this
happening. So, this is August 26th. This
is September 2nd that established our
trend line here. If we go to the 1-hour,
look how many Look, we started knocking
on the door. We started beating on the
door. Uh we we gave it a kick. We gave
it a back kick. Uh we gave it a running
uh spinning roundhouse kick, and you can
see yeah, just pushed down and then it
hit this area of support. So, what's
this other yellow line that I'm looking
at, folks? Well, that's going to be from
this wick low into this wick low. That
establishes the trend line, found nice
support. Found nice support. And
essentially found nice support again.
So, I'd be keeping an eye out on this
one as price continues to move uh to the
downside essentially, but it is trying
to maybe find a little area of support.
But if we go lower than this, I'm
watching this trend line for a potential
long scalp long opportunity on Solana.
And if you want to see more of my
trades, check out Bitcoin Revealed. Now,
Monday through Friday. Used to be Monday
through Thursday. You guys wanted more.
We're We're to do longer episodes on
Friday. Look at some more liquidation
heat maps. I I reveal a lot more of the
crypto industry.
Let's look at Ethereum. Ethereum still
struggling to beat this trend line.
November 10th into January 14th gives us
a trend line here, and you can see ETH,
you know, don't even talk to me about a
bull market for altcoins until we see
this. Now, if this happens, that's where
we might see that breakdown on Bitcoin
dominance. Uh this is a pretty good bull
flag structure, too. You can see a nice
little flag pole, and this will give us
a good target for ETH. And if we could
break above, it's going to be above
3,000. You're looking at a $3,200
Ethereum. Let's look at Cardano real
quick.
Blast from the past. Jane or December
30th, 2022.
Basically feels like 87 years in crypto
time, but you can see this was a nice
little area of support. We came down,
reestablished support. Well, look at the
recent price action. That's where we
essentially got rejected from just a few
days ago. So, now I am watching this
ascending trend line as the next area of
support for Cardano, and currently it's
going to be around 18.7 cents. As we
move up, it'll go up to 19 cents, 20
cents eventually. So, keep an eye on
this for the Cardano charts. Let's look
at XRP. XRP, this is the 4-hour chart
we're looking at. Another nice little
bull flag setup.
Now, I am looking at this pivot support.
So, we do have support before the bottom
of the parallel channel. This pivot area
is going to be from June 15th. So, we're
going back a few months at this point.
So, keep an eye on that. You can see
price rejected there initially, but this
parallel channel is to me a little bit
more important. And what I find
interesting, rejected off the midway
point, support at the midway point, and
now potentially trying to find support
at the midway point again. If we pump,
I'm looking at this area for strong
resistance, and you can just see it
right here. Establish the parallel
channel from right here, August 24th,
August 26th, that gives us our channel,
found support, found resistance, found
resistance, found resistance. So, keep
an eye out on this area right here. And
the major mover that we're seeing today
is pump.fun. Let's zoom out to the
daily.
Look at this, retesting the 382. But,
this is a second touch of the 382, so
slightly less odds that we're going to
favor a bounce. The first one, strong
odds of a bounce. What do we do? We get
a nice little bounce right there. Zoom
into the 1-hour. Right now, I'm thinking
we might need to sweep lower. We kind of
have a sign as well. So, we wick down to
the 382, get a strong little bounce.
What do we do the second time? We wick a
little bit lower. And so, now it is
holding as support, but we might need to
sweep lower on the pump.fun site there
or on the pump.fun token. This site has
just seen an explosion of token
creation. I kid you not, they made
something like 200,000
Solana tokens. Now, vast majority are
going to be bots. It's not too many
humans trading these, and it's not
really, you know,
uh driving any kind of volume to the
Solana charts either. And most of these
are going to zero. You know, they launch
with little liquidity, no real funds, go
to zero, you know, maybe 0.001%
kind of maybe turn into something, which
then they then still go to zero. So, I
wouldn't recommend, you know, chasing
any kind of pump.fun tokens there. You
know, you're not going to find the next
Dogecoin or the next Shiba Inu. That's
all we got for today's ProChart crypto
edition. Thank you for sticking around
to the end. Go ahead, smash that like
button. Check out verifiedinvesting.com.
And if you want to see more on crypto,
check out Bitcoin Revealed 1:30 p.m.
live Eastern Standard Time. I'm there,
and I'm revealing that dark underbelly
of the crypto world. Nick Valdez, that's
all I got for today. Thank you for
sticking around to the end. Hit the like
button. I'll see you folks in the
future. Thank you.